Institute Cautions Federal Government Against New Borrowing

The Chartered Institute of Treasury Management (CITM) has cautioned the Federal Government against caller borrowing, saying specified could plunge the state into debilitating debt.

Registrar of CITM, Mr Olumide Adedoyin gave the informing successful a connection connected Wednesday successful Abuja against the backdrop of caller borrowing and mounting indebtedness by the national government.

According to him, immoderate caller borrowing should beryllium strictly for critical, revenue-generating infrastructure projects and should beryllium connected highly concessional debased involvement presumption and agelong tenor from multilateral institutions.

“As astatine mid-2024, Nigeria’s indebtedness representation is characterised by accelerated growth, a changing composition, and important fiscal pressures,” Adedoyin noted.

He, however, commended the Federal Government for the 2025 gross surplus, describing it arsenic an accidental to money modulation without further debt.

According to him, the gross surplus of 2025 should beryllium seen arsenic a aureate accidental to money this modulation without resorting to further debilitating debt.

“The Nigerian authorities is close to observe improved revenue, arsenic it is the superior instrumentality to flight the indebtedness trap.

“However, the Rt. Hon. Speaker Abbas Tajudeen informing is the indispensable counterbalance, highlighting that the existent indebtedness level is unsustainable and threatens the nation’s economical future,” helium noted.

Adedoyin stressed that the way guardant was not done much borrowing, but extremist fiscal subject and assertive gross generation.

Others, according to him, see strategical absorption of existing indebtedness and creating an situation wherever the backstage assemblage tin thrust growth.

In bid to further halt borrowing, Adedoyin said the solution required a multi-pronged attack focused connected extremist increases successful gross and strategical indebtedness management.

He said determination was a request for assertive gross mobilisation, adding that the astir important solution was to grow the taxation net.

This, according to him, was by systematically bringing millions of informal assemblage businesses and high-net-worth individuals into the taxation strategy done exertion and data-driven approaches.

He added that determination was a request to absorption connected taxing wealthiness and consumption, not conscionable income, stressing that it was imperative to amended non-oil revenue.

Adedoyin listed these to see coagulated minerals, agriculture, and the integer economy, which helium said indispensable beryllium prioritised to make export net and taxes.

He besides stressed the request for the Federal Government to guarantee that the Nigerian National Petroleum Corporation (NNPC) Ltd. meets its afloat remittance obligations to the Federation Account, saying transparency successful the lipid assemblage was non-negotiable.

On indebtedness restructuring, Adedoyin urged the Federal Government to proactively prosecute with bilateral and commercialized creditors to restructure indebtedness terms—extending tenors and lowering involvement rates to easiness the yearly repayment burden.

He further called for a drastic simplification successful authorities waste, corruption, and the bloated outgo of governance, portion urging the merger of redundant agencies and strict enforcement of the Fiscal Responsibility Act.

According to him, the saved subsidy funds indispensable beryllium channelled transparently into productive investments and targeted societal information nets, not absorbed into general spending.